About Somerset County, NJ

Some states have specific legislation that requires homeowner associations to have and follow a 30 year repair and replacement plan known as a "reserve study". It is the kind of plan that all HOA boards should follow even if no law exists since that's what good businesses do: plan ahead. Failure to plan for these expensive events inevitably leads to inadequate maintenance, declining property values and dreaded special assessments.

But there are now several new twists that make the idea of a reserve study even more compelling. In most states, HOA boards are allowed to set the level of reserve funding (how much money is set aside each year to address future costs). The fairest approach is the 100% funding model which requires all members along the 30 year time line to contribute a fair share of future costs. However, some boards have for political reasons put less in reserves (sometimes much less) to placate current owners that want to the obligation paid by future owners who have no say in the matter (sound familiar).

Now enters several new 600 pound influences into the reserve funding debate. In December 2007, Fannie Mae and Freddie Mac (the entities that have in past years underwritten most condominium mortgage loans) enacted the following requirements for condominiums where their loans were made being proposed:

1. The condominium is required to have a reserve study.

2. At least 10% of the annual budget must be put into reserves.

FHA (the government agency that insures low down payment loans which have become a huge part of the current mortgage market) is proposing to establish even stricter requirements for condominiums including:

1. Developer controlled condominium reserve funds are required to 100% funded.
2. After developer turnover condominiums are required to be at least 60% funded.

Since Fannie Mae, Freddie Mac and FHA are the 600 pound gorillas in the current condo mortgage market, this means is that if your condominium does not 1.) have a reserve study and 2.) maintain the indicated level of reserve funds, these entities will not underwrite your buyer's or your refinance loan. Folks, this is HUGE.

Condominiums that have an underfunded reserve study need to take decisive action to comply or risk losing vital lending sources. Condominiums that have no reserve study need one as soon as possible and to fund it to indicated levels.

For more innovative homeowner association management strategies, subscribe to Regenesis.net.

Paul Stillwaggon, For All Your Real Estate Needs Contact New Jersey Estates Real Estate Group E-mail: njestates@gmail.com Web: http://www.newjerseyestates.net 908-561-5492 (Paul S) 908-310-1358 (Cell)

NJ Estates Real Estate Group Weichert Realtors 908-561-5492 55 Stirling Road, Watchung, N.J. 07069

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20 University Teams to Compete in the 2009 DOE Solar Decathlon

Read all about it: http://www.energy.gov/8097.htm

Paul Stillwaggon, For All Your Real Estate Needs Contact New Jersey Estates Real Estate Group E-mail: njestates@gmail.com Web: http://www.newjerseyestates.net 908-561-5492 (Paul S) 908-310-1358 (Cell)

NJ Estates Real Estate Group Weichert Realtors 908-561-5492 55 Stirling Road, Watchung, N.J. 07069

Equal Housing Opportunity

Current Listings Info
Luxury New Homes
Custom Build A New Home
Land & Building Lots
New Jersey Estates
All New Jersey Homes
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Our Testimonial Letters
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The website, www.Basking-Ridge-Real-Estate.com is about to see some enhancements! We are working on adding quarterly reports - graphical representations of sale trends, list to sale price ratios, assessments, etc. Please comment if there is anything in particular you'd like to see.

Additionally, I will be offering an opportunity for you to receive a Market Snapshot - for your home, or for a property which you might be interested in purchasing. These market snapshots are easy to read and will be delivered at regular intervals so you can monitor activity in a given neighborhood. Click here for an example or here to request one of your own!

If you are considering a move, please contact me for information about homes for sale in Basking Ridge, the tax credit, the purchase process - or anything else related to real estate.

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COLUMBUS, Ohio-A new business for Columbus is already under investigation by the Occupational Safety and Health Administration because of a recent fire.

Heartland Refinery is a company near Port Columbus International Airport and recycles used motor oil, stripping it of impurities and reselling the base oil to other companies.

The refinery, described as a green business, had a fire in a truck loading area on October 13.

The fire was caused by static electricity which is generated when oil runs through the pipes.

"They even had that problem on the Alaskan pipeline," said Bill Snedegar, CEO of Heartland Refinery.

When asked if the plant is safe, Snedegar replied, "Absolutely safe. What created that fire and it wasn't like a fire, it was like a spark, a flash and they caught it quickly with the fire extinguishers."

"The product that we handle has what's called low conductivity and we learned a tough lesson," said Michael Kopf, the safety compliance officer at Heartland. "Even a well-designed system like we had wasn't enough to deal with that."

In the time since the accident, Heartland officials said they have improved the system of dealing with static electricity through better grounding, and by extending a flow tube so the oil is pumped into a truck below a fluid line which should prevent arcing.

"It has been the bane of our industry from what I've learned," said Kopf.

OSHA confirmed it is investigating the fire at Heartland Refinery Group and investigators were at the plant Thursday.

The plant is continuing operations during the investigation and OSHA says it could be six months before any citations are issued, if they are issued at all.

Paul Stillwaggon, For All Your Real Estate Needs Contact New Jersey Estates Real Estate Group E-mail: njestates@gmail.com Web: http://www.newjerseyestates.net 908-561-5492 (Paul S) 908-310-1358 (Cell)

NJ Estates Real Estate Group Weichert Realtors 908-561-5492 55 Stirling Road, Watchung, N.J. 07069

Equal Housing Opportunity

Current Listings Info
Luxury New Homes
Custom Build A New Home
Land & Building Lots
New Jersey Estates
All New Jersey Homes
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Going Green/ Complete Info

I fielded a question today about whether open houses work and if they should be held weekly. I absolutely believe in open houses! They capture buyers who wouldn't otherwise see your home - either buyers not yet working with a Realtor, or buyers who have their agents looking for something so specific that they may not recommend your property. A person might walk through your home and call their sister or their best friend to tell them about it. You never know where your buyer may come from, so I think it is important to use every tool possible to get the word out about your house and all it has to offer!

It is very hard to predict how the foot traffic will be - I've hosted open houses with only directional signs and internet advertising and have had ten parties through - I've hosted open houses with signs and internet advertising and nobody came. We blame the weather for good traffic (it's a nice day, people are out!) and for low traffic (it's a nice day, people are enjoying it doing other things!). Rain and snow are detractors for all but the serious shopper - and you DO want those serious buyers to walk through, right? So why not have an open house on a grey day?

Bottom line - open houses never hurt, and while they aren't a silver bullet, they are a great tool!

Weichert, Realtors reported today that this past weekend was a busy one for consumers excited about the extension and expansion of the homebuyer tax credit. The number of people attending Weichert Open Houses was up 13% compared to the same weekend in 2008. In addition, the average number of attendees at each Weichert Open House was 32% greater than last year! This was the 10th straight week where average attendance was better than the prior year!

If you are thinking of putting your Basking Ridge home on the market, let me know, I'm happy to provide a no-obligation market analysis for you. Just starting your search for your next home? Click here for information on houses for sale in Basking Ridge.